EA executives dump stock

Fatcat

Stock is often used as a way to incentivize employees – not only do they gain crucial interest in the success of the company, they can also make bank if they do their jobs right. While share sales are normal, it is striking that top EA executives have sold off all their shares.

The markets have been doing well – EA stock hit five-year-high prices. Of course this prompted those with shares to sell and take some profit. However, It’s concerning that Patrick Soderlund, executive VP of the EA Games label, and the general counsel, Stephen Bene, sold off all their shares. Soderlund sold his 36k shares for over $1.2 million last Thursday, and on the same day Bene sold 7 771 shares to grab an easy $260k. Meanwhile, the second in command, Peter Moore, halved his equity in the company – he sold off 100k shares and took home a cool $3.4 million.

I have no problem with people selling stock. This is clearly the first available window within which executives are allowed to sell their shares – yes, corporations generally put restrictions on stock sales in times around financial results being released, or major announcements. With E3 just around the corner, it could just be the best time for these top dogs to grab some quick and easy money while the stock price is high. That said, it strikes me as extremely strange for three of them to be taking so much profit right now, especially to the point of selling off all their shares.

Could this mean that there will be a shakeup at the top of EA? Or perhaps there are some announcements coming at E3 and the executives are grabbing their cash now, just in case. Of course, we don’t know if EA is preparing to give executives even more stock after E3, bringing them back into the fold. Still, something doesn’t sit quite right about all these top-level executives selling off their shares in the company – what do they know that other investors don’t? Or, is it just yacht buying season?

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Author:Zoe Hawkins

Wielding my lasso of truth, I am the combination of nerd passion and grammar nazi. I delve into all things awesome and geek-tastic. I believe people should stop defining themselves and just enjoy playing games, so let's get on with it!
  • https://twitter.com/SaveTheQueenIX Umar Returns

    I need that cat

  • Alien Emperor Trevor

    Heh. What big game are they releasing next?

  • Hammersteyn

    It’s because EA plans a new twist in the next Star Wars game
    http://d24w6bsrhbeh9d.cloudfront.net/photo/adNMr5V_460sa.gif

    • Alien Emperor Trevor

      lol

    • HvR – THE Average GAmer

      Mesa tappa your mama

    • HvR – THE Average GAmer

      Or you get Jar-Jar in the stock standard game but there is $5 Dart Vader DLC pack.

      • Hammersteyn

        LOL

    • Kensei Seraph

      That could have made for an amazing scene.

    • Ultimo_Cleric N7

      HAHAHAAA!!!! Win Hammer my man

  • VampyreSquirrel

    Wish I had 100k shares in EA… I would have sold them all too… and then bought CDPR shares :P

  • RinceBroken

    I think they all hit the wrong button ‘sell stock’ instead of ‘sell golden horse armour’.

  • HvR – THE Average GAmer

    Another difference between the “workers” and executives.

    Executive get “normal shares” and can basically do as much insider trader as long as they do not go overboard and pull an Enron.

    Employees get “special shares” which they can only sell if the company (executives) feels like like buying them back or if they leave their jobs.

    • Weanerdog

      At EA the Employees just need to buy the “sell – DLC” before they can offload their stock.

  • Drizzt

    Why is it odd? If the stock price is at a 5 year high then why wouldn’t you want to sell them?

    You could then use that money to re-invest when the stock price goes down again or invest in something else? Or you could bank it, although I doubt they would do that.

    I don’t think it’s a sign of anything. It’s just opportune.

    • HvR – THE Average GAmer

      Just before E3?

      If they were announcing something worthwhile at E3 the price will go up even more.

      You do not sell everything when the price is high and climbing; you sell when you know it is going down.

      • Stephen Perry

        You do if your financial advisers and algorithms tell you to.

  • InsanityFlea

    Avoiding massive share price drops because battlefront will be just as bad as BF4. The execs have spoken.

  • MakeItLegal

    Dogey as f.. Ck

  • Decembermaloy

    Something Wicked This Way Comes

  • Kromas

    E3 Reveals for EA will have a $5 cover charge (read DLC) per reveal. :)

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